Soma Gold (TSX-V:SOMA) has closed its private placement with a total proceeds of C$17.25 million ($19.31 million), retaining C$1.73 million in the second and final tranche.
Under the second tranche, Soma issued an additional 1.51 million units at C$1.15 per unit, bringing the aggregate units issued to 14.99 million in this finance offering.
Each unit comprises one share and one-half purchase warrant, with each warrant entitling the holder to purchase an additional share in the company at an exercise price of C$2 per share to expire after three years from the issue date.
Funding will be directed towards Soma’s ongoing mill expansion at the El Limon property in Colombia, as well as the installation of ore sorting infrastructure, exploration and development activities at the Nechi mine and general capital.
CEO Geoff Hampson says the company is pleased with its efforts to close this placement with oversubscription.
“The strong demand we received, including participation from strategic investors, gives us the flexibility to aggressively advance our growth plans while continuing to build long-term value for shareholders,” Hampson says.
As reported by Mining.com.au, the company closed its first tranche earlier this week with C$15.51 million.
For the final tranche of this offering, Soma paid a total of $104,070 and issued 90,496 warrants to finders. Finder’s warrants fall under the same conditions as purchase warrants.
Soma Gold is a gold explorer and producer with mineral concessions spanning over 43km2 along the Utu fault in Antioquia, Colombia.
Write to Maddison Elliott at Mining.com.au
Images: Soma Gold
